Correlation Between Jiangsu GDK and Huizhou Speed
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Huizhou Speed Wireless, you can compare the effects of market volatilities on Jiangsu GDK and Huizhou Speed and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jiangsu GDK with a short position of Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Huizhou Speed.
Diversification Opportunities for Jiangsu GDK and Huizhou Speed
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Huizhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless and Jiangsu GDK is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jiangsu GDK Biotechnology are associated (or correlated) with Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Huizhou Speed go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Huizhou Speed
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Huizhou Speed. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.17 times less risky than Huizhou Speed. The stock trades about -0.3 of its potential returns per unit of risk. The Huizhou Speed Wireless is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,530 in Huizhou Speed Wireless on November 3, 2024 and sell it today you would lose (280.00) from holding Huizhou Speed Wireless or give up 18.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Huizhou Speed Wireless
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Huizhou Speed Wireless |
Jiangsu GDK and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Huizhou Speed
The main advantage of trading using opposite Jiangsu GDK and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Huizhou Speed can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.| Jiangsu GDK vs. Kweichow Moutai Co | Jiangsu GDK vs. G bits Network Technology | Jiangsu GDK vs. Anhui Gujing Distillery | Jiangsu GDK vs. Anhui Gujing Distillery |
| Huizhou Speed vs. Kingclean Electric Co | Huizhou Speed vs. Postal Savings Bank | Huizhou Speed vs. Allied Machinery Co | Huizhou Speed vs. Masterwork Machinery |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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